Uber and Lyft Threaten to Pull Out of Minneapolis After City Council Vote

Uber and Lyft are threatening to drag out of Minneapolis after a Metropolis Council vote there assured a minimal hourly wage to drivers.

The council voted 10 to three on Thursday to override a mayoral veto of an ordinance that requires ride-hailing providers to pay drivers a minimal charge of $1.40 per mile and 51 cents per minute to make sure that they earn the equal of native minimal wage of $15.57 per hour.

The wage ordinance was first authorized final week, however was vetoed by Minneapolis’s mayor, Jacob Frey.

Each Uber and Lyft mentioned they’d cease working within the metropolis when the legislation takes impact on Might 1. Uber added that it might depart the Minneapolis metro space, together with the airport, making it the primary metro space within the nation with out Uber’s presence.

The businesses argued that they’d be pressured to go the elevated price on to riders, which might end in drivers finally incomes much less. In a press release, Lyft known as the invoice “deeply flawed,” including, “this ordinance would make rides unaffordable for almost all of Minneapolis residents.”

The ordinance is the most recent minimal wage legislation for gig economic system employees, as stress grows between employees and gig corporations over truthful pay. In September, New York Metropolis required tech platforms like Uber, DoorDash and Grubhub to pay meals supply employees about $18 an hour. States together with Washington and California in addition to cities like Seattle have set minimal pay requirements for gig employees over time.

Critics of the Minneapolis invoice embody the mayor and Minnesota’s governor, Tim Walz, who vetoed an analogous invoice final yr.

Supporters, similar to Metropolis Council member Jamal Osman, who coauthored the legislation, said that ride-hailing providers in Minneapolis rely closely on drivers from the low-income or immigrant communities.

The businesses are anticipated to push for a state invoice that might overturn the Minneapolis ordinance. Final week, Minnesota state legislators proposed minimal pay requirements for ride-hailing drivers at a charge barely decrease than what the town of Minneapolis authorized.